Week in AI: Bitcoin ATH Sends AI Tokens Parabolic

[14/11/2024]
Bitcoin hits new ATH at $93,000, fueled by U.S. Senator Cynthia Lummis's Bitcoin reserve bill for 2025; crypto market cap soars past $3 trillion.

TL;DR…

- Bitcoin breaks $93,000 ATH: U.S. Senator Cynthia Lummis pushes Bitcoin reserve bill for early 2025, blasting crypto market cap past $3 trillion.
- AI tokens surge: Nine of the top 10 AI tokens gain value; AIOZ Network leads with 85.1% weekly growth.
- Key developments in AI: AltLayer launches AI agent platform; PAAL AI merger vote begins with 6.24:1 FET conversion ratio.
- Major funding for AI: Zero Gravity Labs raises $40M and secures a $250M agreement for decentralized AI OS, enhancing       blockchain-integrated AI deployment.
It’s that time again.

After months of choppy market action, the cryptocurrency market has returned to form. Almost all promising tokens have broken out of a midterm downtrend with a sharp upward move, leaving many spectators sidelined.
Before we take a look at how the AI token sector responded, let’s do a quick market overview.

Market Overview

Bitcoin smashed through $93,000 to reach its all-time high on Nov. 13, 2024, after U.S. Senator Cynthia Lummis announced clear plans to build a strategic Bitcoin reserve and pay the Bitcoin reserve bill within "the first 100 days" of Trump's presidency.

The rest of the cryptocurrency market responded accordingly. The total market capitalization of all cryptocurrencies smashed through $3 trillion earlier today. BTC still maintains an extraordinarily high 59.8% dominance—close to its highest value this year.

Though not quite keeping pace with BTC, the broader altcoin market has experienced significant growth over the last seven days. The TOTAL2 market cap (altcoin market cap) is up 29.5% over the past week, whereas the TOTAL3 market cap (altcoins minus ETH) is up 26.8%.

The CoinMarketCap Fear & Greed Index now sits at 87/100, its highest value since March 2024. This indicates that extreme greed currently permeates the market.

AI Market Recap
As you might have noticed, the altcoin market has exploded with interest—even previous laggers like Ethereum (ETH) have begun tacking on impressive gains.
This momentum has also spilled over into the AI sector.

As it stands, nine of the top 10 largest AI tokens are in the green over the last week, the only exception being Artificial Superintelligence Alliance (ASI), which is down 2.4% during this period.
AIOZ Network (AIOZ) is now leading the top 10 AI tokens by seven-day returns after gaining 85.1%, whereas Render (RENDER) isn't far behind with a 53% gain.

The market capitalization of all AI tokens now sits at $40.2 billion. This is its highest value in more than six months and an improvement of more than 33% in a week.

Scrolling down to some of the smaller-cap AI tokens, we find a handful of particularly impressive performers. These include

Meanwhile, so-called “sentient” AI meme coins like Goatseus Maximus (GOAT) and Fartcoin (Fartcoin) have been smashing through successive highs.

Following its recent Binance listing, Goatseus Maximus (GOAT) briefly touched a $1 billion market cap, whereas the first AI-created meme coin Fartcoin (FARTCOIN) hit $200 million. The two tokens are up 27.5% and 207.6% respectively over the last week.
PAAL AI (PAAL), on the other hand, hasn’t fared so well. The token has collapsed by 63.8% over the last week due to the community uproar surrounding the potential token merger with Artificial Superintelligence Alliance.
When it comes to relative performance, the AI sector isn't putting on a particularly impressive show.

Of the 22 sectors tracked by DefiLlama’s narrative tracker, AI tokens are currently the ninth-best performer by market cap-weighted return. The sector has achieved an mCap-weighted growth of 16.9% in the last week, compared to 35.8% for Solana and 199% for meme coins.

AI News Roundup

As is customary in bull markets, projects commonly withhold updates, developments and bullish news until market conditions are favorable.

Given that market conditions don’t get much more favorable than they are right now, there’s an avalanche of interesting updates to catch up on.

We’ve highlighted five of the most important stories this week to help you get up to speed:

AltLayer Unveils AI Agent Solution: AltLayer launched "Autonome," a new platform enabling users to deploy autonomous AI agents on its blockchain rollup infrastructure. These AI agents are designed to handle tasks like trading, data analysis, and other automated functions while leveraging the scalability and security features of AltLayer’s technology. PAAL AI Considered for Token Merger: The ASI Alliance is considering integrating the personalized AI ecosystem token PAAL into its ecosystem—pending community approval. The community vote will take place between Nov. 18 and 23, 2024. If the community votes in favor, $PAAL will be migrated to $FET at a 6.24:1 FET ratio. 

Near Protocol To Build the World’s Largest Open-Source AI Model: Near Protocol plans to develop a 1.4 trillion-parameter open-source AI model, surpassing Meta's Llama model. The project will be funded through token sales, with tokenholders earning returns from the model's usage.

Artificial Superintelligence Alliance Deploys Proto-AGI in Minecraft: The ASI Alliance has introduced AIRIS (Autonomous Intelligent Reinforcement Inferred Symbolism), a proto-AGI that learns within Minecraft. AIRIS adapts in real time, refining its rule set based on in-game experiences, marking a significant step toward practical, scalable neural-symbolic learning.

Zero Gravity Labs Secures $40 Million for AI Operating System: Zero Gravity Labs has secured $40 million in funding and a further $250 million “token purchase agreement” to develop a decentralized AI operating system, aiming to enhance AI accessibility and transparency. The system will leverage blockchain technology to ensure secure and efficient AI model deployment.

Sophie Nguyen